Losing a great hire to a poorly drafted contract costs more than a month’s payroll. In 2025, Zambian labour inspectors—and savvy employees—know exactly what must appear in a fixed-term agreement. Miss a single required clause and you risk invalidating the contract, exposing the business to penalties, or facing an expensive wrongful-termination suit. This guide walks you through every mandatory element under the Employment Code Act, 2019 and the latest legal commentary, so you can issue compliant contracts with confidence.
Why written contracts matter more than ever
The Employment Code Act makes a written contract compulsory whenever the engagement will last six months or longer, or the employee will work an equivalent number of days within a year. Oral agreements are simply not enough at that point, and the onus to produce the written terms sits squarely on the employer.(faolex.fao.org)
Failing to provide a valid written contract can:
- Shift the burden of proof onto the employer in any dispute
- Trigger fines or surcharges imposed by labour officers
- Limit your ability to enforce probation, notice, or non-compete terms
In short, a solid contract is both a compliance shield and a relationship-management tool.
Mandatory clauses under the Employment Code Act, 2019
The Act sets an unequivocal floor. At minimum, every fixed-term contract must contain the clauses below.
| Clause | Why it’s required |
| Names of employer and employee | Establishes the legal parties. |
| Date of commencement | Defines when statutory benefits start. |
| Job title / duties | Clarifies expectations; used to gauge “suitable alternative employment” if restructuring. |
| Place of work | Determines applicable wage orders & safety duties. |
| Hours of work | Enables enforcement of overtime limits (48 hours/week standard). |
| Remuneration details | Must include rate, frequency, and payment method. |
| Leave entitlements | Annual, sick, maternity/paternity, family responsibility. |
| Notice period for termination | Statutory minimum is 14 days (≤3 months’ service) or 30 days (>3 months).(iclg.com) |
| Reference to collective agreement | Only if such an agreement applies. |
| Probation (if any) | Max 3 months; assessments must be given before expiry.(parliament.gov.zm, skuad.io) |
| Duration of the contract | Fixed-term deals must specify an end date or project completion trigger. |
Tip: Insert each clause under a bold, clearly labeled heading. Labour officers look for quick proof of compliance during spot checks.
Fixed-term specifics: duration, renewal, and conversion
- Define the exact term
State both the start and end dates —or tie the termination to a project milestone (e.g., “completion of the XYZ bridge”). Ambiguity can transform a fixed-term hire into an open-ended (permanent) employee with full redundancy rights. - Address renewal rules upfront
The Act is silent on automatic renewals, so write them in plain language:
“The contract may be renewed by mutual agreement in writing at least 14 days before expiry.” - Mind the “unbroken service” trap
Rolling extensions without proper breaks may signal de-facto permanence. If you need recurring seasonal workers, structure clear intervals between terms.
Probation periods: the 3-month ceiling
You may test a new hire’s suitability, but only for 90 days total. Any extension must also end within the three-month cap, and feedback must reach the employee before the period lapses. If you stay silent, the employee is deemed confirmed automatically.(skuad.io)
- Best practice: Add a mid-probation review meeting date to the contract calendar.
- Avoid: “We reserve the right to extend probation at our discretion.” That language violates the statutory limit.
Termination and notice: stay on the right side of the law
- Minimum notice
- 14 days for service >1 month but ≤3 months
- 30 days for service >3 months
These are statutory floors. You may grant longer periods but never shorter ones.(iclg.com)
- 14 days for service >1 month but ≤3 months
- Payment in lieu of notice (PILN)
State clearly that either party may pay wages equal to the notice period instead of working it. Outline how unused leave days will be cashed out. - Fair procedure
Even with proper notice, dismissal must follow procedural fairness—investigations, hearings, and written reasons—especially for misconduct or redundancy.
Optional yet strategic clauses (recommended)
While not mandatory, the following provisions strengthen the contract and minimise disputes:
| Clause | Why include it |
| Confidentiality & data protection | Vital for roles handling client files or IP. |
| Non-compete & non-solicitation | Enforceable only if reasonable in scope, time, and geography. |
| IP ownership | Clarify that works created in the course of employment belong to the company. |
| Dispute-resolution pathway | Outline first-tier mediation before Labour Office escalation. |
| Severability & whole-agreement | Prevents stray emails from trumping the signed contract. |
Caution: Zambia’s courts will strike out unduly broad non-competes. Anchor them to legitimate business interests and limit them to 6–12 months wherever possible.
Compliance checklist for HR managers
- Draft the contract using the mandatory headings above.
- Explain the terms to the employee (especially if they are not fluent in the contract language).(faolex.fao.org)
- Obtain signatures (or thumbprints) in duplicate copies.
- Attest the contract before a labour officer if required by local practice.
- File one copy in the employee’s personnel file; give the other to the employee on day 1.
- Calendar key dates—probation review, contract expiry, notice deadlines.
- Review annually for changes in wage orders, leave rules, or statutory benefits.
Common pitfalls—and how to avoid them
| Pitfall | How to fix it quickly |
| Using a permanent template for a fixed-term hire | Replace “ongoing employment” references with a clear end date. |
| Omitting probation details | Either include a 90-day clause or state “No probation.” |
| Forgetting to specify payment frequency | Add: “Salary is paid monthly in arrears by bank transfer on the last working day.” |
| Vague job descriptions | Use outcome-based language (e.g., “Manage payroll for 300 employees”) to curb scope-creep disputes. |
Conclusion: contracts that protect people and profits
A well-drafted fixed-term employment contract does more than keep your company out of the Labour Office’s spotlight. It sets transparent expectations, promotes trust, and streamlines off-boarding when the project ends. By embedding every mandatory clause—and sharpening them with strategic add-ons—you safeguard both the employee’s rights and the employer’s bottom line. In the end, compliance isn’t red tape; it’s a competitive advantage.
